Tahera arranges $3.5-million financing
Tahera Corp TAH
Shares issued 159,300,000 Jul 22 close $0.225
Fri 23 Jul 99 News Release
Mr. Grant Ewing reports
Tahera Corporation has entered into an agreement with Dundee Securities
Corporation as agent, for a private placement of special notes exchangeable
for secured convertible debentures for an amount of approximately
$3.5-million. It is expected that the financing, which is subject to
regulatory approval, will close on or about July 30, 1999.
Tahera intends to use the proceeds of this financing for the continued
exploration of its wholly owned Jericho properties, to conduct the
feasibility study on the Jericho diamond project, to complete the mini-bulk
sample of the Contwoyto-1 kimberlite pipe and for general working capital
purposes.
The convertible debentures will have a five-year term and an 8 per cent
coupon with interest payable semi-annually. Tahera may elect to satisfy its
obligation to pay the interest portion of the convertible debentures
through the issuance of common shares. Of the convertible debenture,
$3-million will be convertible into common shares on the basis of 8,000
common shares per $1,000 convertible debentures at the option of the
holder. The conversion price for the remaining convertible debentures is
subject to regulatory approval, but will be not more than 8,000 common
shares per $1,000 convertible debentures. The convertible debentures will
not be redeemable before July 31, 2000. Thereafter, the company may redeem
the convertible debentures at its option depending on the then trading
price of the Tahera common shares. |
